Complaint - GME liquidation problem which resulted in huge negative liquidation value

Discussion in 'Interactive Brokers' started by Baldur01, Feb 4, 2021.

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  1. Butterfly

    Butterfly

    you could have open an account with another broker, and write a put instead to offset the loss :p

    you were writing calls, it's dangerous if you don't know how. If you had bought that call at 65 when the underlying was trading at 50, then it would have been a different story :)
     
    #51     Feb 4, 2021
  2. Butterfly

    Butterfly

    you also need to learn about that famous formula for options parity, to cover the call, you could have short some kind of floating rates ETFs with no volatility to "fund" the margin call before it happened.
     
    #52     Feb 4, 2021
  3. Butterfly

    Butterfly

    The put-call parity:

    The formula for put call parity is c + k = f +p, meaning the call price plus the strike price of both options is equal to the futures price plus the put price. ... For example, if the futures price is 100 minus the call price of 5, plus the put price of 10 minus the 105 strike equals zero.
     
    #53     Feb 4, 2021
  4. Baldur01

    Baldur01

    There are many things, I could have done, if it was be possible to do. But again, with negative net liquidation value, you can just wait for the broker to liquidate you. There is not a single trade you can enter.
     
    #54     Feb 4, 2021
  5. destriero

    destriero


    You're looking for an out. Your out was not shorting naked calls. Now you are whining for your clearing firm to bail you out. I despise this shit... take RESPONSIBILITY. It's not your broker's job to protect you from yourself.

    Imagine a fast market in shares in which you shorted NAKED and were debit. It's not as though you're going to pay it back so what difference is the size of the debit?
     
    #55     Feb 4, 2021
  6. Butterfly

    Butterfly

    yeah, they froze your account because compliance saw you were a big fucking risk.
     
    #56     Feb 4, 2021
  7. Baldur01

    Baldur01

    Thank you, everyone for posting help/opinion. Unfortunately, the answers moved to an unproductive direction. Hence, this will be my last post.
     
    #57     Feb 4, 2021
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  8. terr

    terr

    Butterfly: ... especially with crazy volatility stocks like GME. Feb 19 70 puts when the stock was 310 were 15.50. Around 23 today. I mean... stock is down 80%, the puts went up just a bit :) Not that I didn't expect that but still.
     
    #58     Feb 4, 2021
  9. newwurldmn

    newwurldmn

    that can’t be true. They must let you close trades to make your account in compliance.
     
    #59     Feb 4, 2021
  10. Butterfly

    Butterfly

    shutup you stupid millennial, you have no fucking clue. Go back to Reddit with you wank buddies :)
     
    #60     Feb 4, 2021
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